Besides, KVIC implements a specific programme for cluster development, namely, Scheme of Funds for Regeneration of Traditional Industries (SFURTI), under which assistance for replacement of obsolete equipments, setting up common facilities centres, product development, market promotion and other support are provided.
With a view to popularize and promote khadi and village industries products KVIC has been organizing State and National level exhibitions in collaboration with State/UT KVI Boards. During the last three years, KVIC has organised a total of 84 such exhibitions in the country. KVIC also focuses on quality participation in international exhibitions to tap new/ emerging markets for KVI products.
KVIC has initiated a number of steps during last five years to re-vitalize the khadi sector. These include a comprehensive reform package for the khadi sector, namely, the Khadi Reform and Development Programme (KRDP), which includes capacity building of 300 khadi institutions and improved marketing. KRDP is being implemented with an assistance of US$ 150 million from Asian Development Bank (ADB).
Government has also introduced in 2009-10, a scheme for ‘Strengthening of Infrastructure of Existing Weak Khadi Institutions and Assistance for Marketing Infrastructure’, which provides assistance for revitalization of sick and problematic khadi institutions and helps in renovation of sales outlets.
The Ministry has introduced w.e.f 01.04.2010, a flexible, growth stimulating and artisan oriented Market Development Assistance (MDA) Scheme, in place of the erstwhile system of Rebate. Under MDA, financial assistance is provided to institutions @ 20% of the value of production of khadi and polyvastra, to be shared among artisans, producing institutions and selling institutions in the ratio 25:30:45. MDA provides institutions a flexibility to use the assistance for improving the outlets, products and production processes, besides giving incentive to customers, etc. and is also directed towards revitalizing the sector.
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